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Note 11 - Notes Receivable | 9 Months Ended
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Sep. 30, 2023
Notes to Financial Statements |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 11 - Notes Receivable Notes from Franchisees Several franchisees borrowed funds from us primarily to finance the initial purchase price of office assets, including intangible assets. Notes outstanding, net of allowance for losses, were approximately $4.7 million and $3.5 million as of September 30, 2023 and December 31, 2022, respectively. Notes receivable generally bear interest at a fixed rate between 6.0% and 10.0%. Notes receivable are generally secured by the assets of each office and the ownership interests in the franchise. We report interest income on notes receivable as interest income in our consolidated statements of income. Interest income was approximately $83 thousand and $51 thousand during the three months ended September 30, 2023 and September 30, 2022, respectively. Interest income was approximately $197 thousand and $157 thousand during the nine months ended September 30, 2023 and September 30, 2022, respectively. We estimate the allowance for credit losses for franchisees separately from the allowance for credit losses from non-franchisees because of the level of detailed sales information available to us with respect to our franchisees. Based on our review of available collateral historical information, current conditions, and reasonable and supportable forecasts, we have established an allowance of approximately $560 thousand and $405 thousand as of September 30, 2023 and December 31, 2022, respectively, for credit losses from franchisees. The following table summarizes our notes receivable balance to franchisees (in thousands):
|  | September 30, 2023 |  |  | December 31, 2022 |
Note receivable |  | $ | 5,228 |  |  | $ | 3,752 |
Allowance for losses |  |  | (560 | ) |  |  | (260 | )
Notes receivable, net |  | $ | 4,668 |  |  | $ | 3,492 |
Notes from Non-Franchisees During 2020, the California licensee experienced significant economic hardships due to the impacts of COVID-19 and the related government mandates in the state. As a result, we restructured a portion of their note payable to the Company in an effort to increase the probability of repayment. We granted near-term payment concessions in 2021 to help the debtor attempt to improve its financial condition so it may eventually be able to repay the amount due. After reviewing the potential outcomes, we recorded an additional impairment of approximately $233 thousand in June 2022. In August 2022 we provided a third forbearance agreement to avoid foreclosure action. As part of the forbearance we forgave additional payments due on the notes and agreed to a short-term payment schedule to collect a net total of $71 thousand resulting in total charge-offs of approximately $1.6 million. We did not receive or recognize any interest income during the three months ended September 30, 2023 or September 30, 2022. We received and recognized interest income of approximately $-0- and $41 thousand during the nine months ended September 30, 2023 and September 30, 2022, respectively. There was no balance due from non-franchisees at September 30, 2023 or December 31, 2022.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//310-10/tableOfContent + Details
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